You are able to make a current deposit in the amount of $21,605.49. The expected discount rate is 9.6%. Interest is earned on an annual basis. The time period is 10 years. What is the size of the annual withdrawal possible under these circumstances? a. $2,160.54 b. $3465.00 c. $3,456.0O d. $4,356.00
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- A deposit of $1300 will be after 3 years $1639. If the interest is compounded annually, what is the annual interest rate: a. 10.25% b. 8.02% c. 6% d. 8.5%a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each year 3% compounded annually 18 years $140,000 a.The periodic deposit is $_______. (Do not round until the final answer. Then round up to the nearest dollar asneeded.)Consider the following cases: Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6 a. Calculate the future value at the end of the specified deposit period.
- 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?You deposited P5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario above using a simple interest assumption and compound interest assumption.An Initial payment of $6,000 is deposited Into a bank with a nominal annual Interest rate of 9.5%, compounded semi-annually. You would like to withdraw this amount In in a series of 5 equal annual sums, with the first withdrawal being 1 year form the deposit. What is the amount that should be withdrawn each year? O $3,571.71 $2,571.71 O $2,271.71 O $1,571.71
- You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay quarterly interest of 3% (compounded quarterly). What is the value of this deposit at the end of year 3? A. 11,560.00 B. 15,351.95 C. 9,853.83 D. 12,118.97a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each month 6.25% compounded monthly 45 years $1,000,000 a.The periodic deposit is $______. (Do not round until the final answer. Then round up to the nearest dollar asneeded.)If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %
- Direction: Compute the annual interest, total interest, and amount to be received or paid at the end of the term for the scenario below using a simple interest assumption and compound interest assumption. You deposited ₱5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months.Consider the following accumulated amounts.1. A deposit of P100,000 at an annual simple interest rate of 5% accumulates to A at the end of 5 years.2. A deposit of P100,000 at an annual simple interest rate of 6% accumulates to B at the end of 4 years.3. A deposit of P100,000 at an annual simple discount rate of 3% accumulates to C at the end of 8 years.4. A deposit of P90,000 at an annual simple discount rate of 5% accumulates to D at the end of 5 years.5. A deposit of P90,000 at an annual simple discount rate of 4% accumulates to E at the end of 6 years.Which deposit accumulates to the biggest amount: A, B, C, D or E?Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the end of each year. What is the total in the account in 10 years? A. sinking fundB.present value C.amortizationD. ordinary annuityE. future value Answer the question. (Round your answer to the nearest cent.)